How Much Is My Apartment Building Worth in Norfolk, Virginia Right Now?
How Much Is My Apartment Building Worth in Norfolk, Virginia Right Now?
Right now, Hampton Roads multifamily assets are trading at roughly a 6.5% market cap rate on average, but actual closed deals over the past 12 months have ranged from 5.9% to 7.3%. If your property nets $500,000 in NOI, that range alone is the difference between an $6.8M and an $8.5M valuation — so the honest answer to "what's it worth" depends on where your specific asset falls in that spread, not the market's headline number.
Why Hampton Roads is pricing differently than a year ago
Unlike a lot of Virginia submarkets still digesting oversupply, Hampton Roads is in a genuinely strong position: vacancy sits at just 5.0%, well below the market's historical average of 5.9% and the national rate of 8.1%. Renters absorbed nearly 2,000 units over the past year while only 1,286 units were delivered — demand is outpacing new supply, which is exactly the dynamic that supports pricing.
What's actually moving valuations in 2026
Three numbers matter more than the market-average cap rate right now:
- Rent growth is genuinely strong. Asking rents rose 5.7% over the past year, far outpacing the 0.7% national average, and the market is forecast to end 2026 at 6.2% growth. That's real NOI upside a buyer can underwrite, not just a hopeful projection.
- New supply has largely dried up. Only 3,317 units are currently under construction across the entire region — 2.6% of existing inventory, right in line with the national rate. Construction has pulled back hard from the pandemic-era peak, which limits future competition for your tenants.
- Sales activity has bounced back. Over the past 12 months, 6,328 units traded across 66 properties for $1.1 billion in volume — activity that held up despite a higher-rate environment, with buyers still competing for well-located, quality assets.
The variable that changes everything: your asset's star rating and vacancy at sale
The 66 comparable sales over the past year ranged from a 2.4% cap rate up to 9.4%, with the median landing at 5.5% — and the biggest driver of where a given deal falls isn't location, it's condition and occupancy. Recent significant sales show newer 2024-built product like Allure at Edinburgh and District 757 trading in the $300,000+ per-unit range, while older 1970s-vintage assets with elevated vacancy have traded closer to $100,000-$120,000 per unit. Before anchoring to any cap rate, the real question is whether your vacancy and deferred maintenance are dragging your number toward the high end of that range.
The takeaway
Your property's value isn't the Hampton Roads average cap rate — it's your specific NOI divided by the cap rate that matches your building's age, condition, and occupancy, and that's where a broker's read on comparable sales actually earns its keep.
What to bring me
If you own a 50-400 unit property in Norfolk, Virginia Beach, Chesapeake, or elsewhere in Hampton Roads and want an honest read on where it falls in today's range, send me your trailing 12-month operating statement and rent roll. I'll come back with a real number, not a market-average guess.
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Justin Ferguson is a Multifamily Specialist in Marcus & Millichap's Southern Virginia Office. He prides himself in helping corporate professionals, private investors, REITS, developers, and syndicators strategize and maximize their returns to grow their portfolios at faster, more efficient rates.